Alten stock rebounds 2% and defies a red CAC 40
After several difficult sessions that saw the stock lose ground throughout the first week of September, Alten posts a rebound this Monday in a Paris market oriented downwards. The engineering and technology consulting specialist thus defies the general trend, while the CAC 40 and SBF 120 decline by 0.85% and 0.84% respectively at close.
A 2.23% rebound against the tide of a declining SBF 120
The Alten share closes at €71.20, up 2.23% compared to Friday's last close at €69.65. This gain places the stock among the strongest gains of the SBF 120 at close, in a session where virtually all technology and industrial stocks decline under the weight of a tense macro context. The week of "super central banks" weighs on European markets: the Fed meets Wednesday, the Bank of England Thursday, the Bank of Japan Friday, against the backdrop of U.S. inflation remaining at 3.4% in August and Brent crude rising above $107 due to tensions around the Strait of Hormuz.
This context pushes the VIX to 17.22 points, up 8.71% on the session. On a rolling weekly basis, Alten still declines 1.73%, extending the correction that began in early September, even though the three-month performance remains largely positive at +16.34%.
Alten remains below its MA20 but maintains a comfortable cushion above its long-term averages
Despite today's rebound, Alten is still trading below its 20-day moving average, set at €73.69, representing a negative gap of 3.38%. The stock thus faces resistance at this level, which materializes the closest short-term resistance, before the €78.90 zone identified as main resistance. Conversely, the situation is more comfortable regarding long-term averages: the price is above the MA50 at €68.16 (+4.46%) and well above the MA200 at €64.69 (+10.06%), which preserves the underlying uptrend built since the beginning of the year.
The RSI at 40 remains in neutral territory, far from extreme zones, leaving room for movement in both directions. From a valuation standpoint, according to the consensus of surveyed analysts, the stock trades at approximately 9.3 times current fiscal year earnings and 8.3 times next fiscal year earnings, with earnings per share growth expected at +12.8% year-over-year. Breaking through the MA20, currently at €73.69, will be the first milestone to watch to confirm a sustained recovery.
